The stock of local government bonds（hereinafter referred to as “local bonds”）in Yunnan was at a relatively high level among all provinces in China. Since 2020，the issuance of local bonds has accelerated，and the importance of debt risk control has become increasingly prominent. This report first describes the operation of the local bonds market in Yunnan，and analyzes in detail the use of project income special bond funds and the pulling effect on regional investment. Finally，it analyzes the regional debt risk around the overall situation and financial performance of local debt in Yunnan，and puts forward suggestions for the development of local bonds market in Yunnan in the next stage.